A divided Fed sees more rate cuts ahead this year
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A Thursday speech from Federal Reserve governor Michael Barr was the latest reminder that coming rate moves may face opposition on both sides. Speaking to a group of economists in a Minneapolis suburb,
New York Fed President John Williams supports more interest rate cuts this year, as he sees pressures on labor market conditions as more concerning than a recent uptick in inflation, he said in an interview published on Thursday.
Federal Reserve officials agreed at their recent policy meeting that risks to the U.S. job market had increased enough to warrant an interest rate cut, but remained wary of high inflation amid a debate about how much borrowing costs were weighing on the economy,
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John Williams, president of the Federal Reserve Bank of New York, is primarily concerned with weakness in the labor market.
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Chicago Federal Reserve Bank President Charles Evans on Monday said he expects U.S. inflation to reach 2% by 2023 and wants to push it to 2.5% to offset years of below-target price rises.
A few officials appeared reluctant to support the central bank’s interest rate cut last month, underscoring the tough task ahead for Chair Jerome H. Powell to forge a consensus.